Lightfoot Company Sells Its Product for $55 and Has Variable

question 58

Multiple Choice

Lightfoot Company sells its product for $55 and has variable costs of $30 per unit. Total fixed costs are $25 000. What will be the effect on the breakeven point if variable costs increase by 10% due to an increase in the cost of direct materials?

• A)It will increase by approximately 136 units.
• B)It will decrease by approximately 136 units.
• C)It will increase by approximately 242 units.
• D)It will decrease by approximately 242 units.

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Definitions:

Ultimate Causes

Fundamental reasons for behaviors or phenomena, often examined in evolutionary biology to understand why certain traits or behaviors have evolved.

Natural

Pertaining to phenomena, elements, or processes that occur in the natural world without human intervention.

Specific

Distinctively characterized by precise and distinct details or features.

Charles Darwin

was an English naturalist, geologist, and biologist, best known for his contributions to the science of evolution and for his proposition of natural selection as a mechanism for evolution.